Continuous internal assessment-1
For
Financial accounting for managers
CIA-1 submitted in partial fulfillment of the requirements for the degree of Master of Business
administration
By
Anish Suman- 2427607
Shamanth R- 2427650
Shriyanshu Kumar- 2427655
Venkatakrishna Puvvada- 2427660
1 MBA G
Under the Guidance of
Prof. Aparna R Hawaldar
MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST(DEEMED TO BE UNIVERSITY), BANGALORE
JULY, 2024
Financial accounting
Accounting often refers to the language of business and it often helps in facilitating
communication among individuals who have an interest in a particular business. It aspires to
communicate financial information in the world of business. It plays a major role in decision
making processes for businesses and makes sure that the individuals who are a part of the
business are also a part of any business or those who have interest in any kind of business are
able to make sound and better financial decisions.
Accounting is like an information system and helps to convert the input into output using
different processes. Business transactions and events are an example of the input for the
accounting system and investment by the owner, sale of goods, payments of salaries, etc. are
examples of transactions and events.
Reason for interviewing a stationery shop owner
One of the biggest reasons for interviewing the stationery shop owner is for gaining the
necessary market insights regarding the stationery market in Bangalore, especially near colleges
like Christ University and how the students in such universities tend to contribute to the sales of
this shop.
Another reason is to know more about the financial practices and their day-to-day operations,
especially how such small businesses are able to handle the suppliers, manage the costs and
make sure that there is sufficient cash flow.
The last reason is for knowing about the different customer engagement practices which are used
by this shop to attract customers and how the shop has managed to advertise itself as a reliable
stationery dealer.
25 Transactions made by the shopkeeper
1. The owner invested 5,00,000 in the business
2. Equipment for the Xerox machine was purchased for 50,000.
3. Paid monthly rent of 20,000
4. Bought stationery supplies worth 24,000.
5. Earned 30,000 from Xerox services.
6. Sold stationery items worth 15000
7. Paid the electricity bill of 8,000
8. Paid employee wages of 10,000
9. Advertising expense 2000.
10. Paid 5000 for maintenance of the xerox
11. Provided 2000 worth of stationery on credit
12. Received 2000 from a customer who bought on credit.
13. Bought 24,000 worth of stationery supplies on credit.
14. Paid 24000 to the supplier for the previous credit purchase.
15. Miscellaneous Expense 5000
16. Earned 15,000 from Xerox services on a busy day.
17. Returned 1000 worth of defective stationery to the supplier.
18. Paid 600 for the Internet.
19. The owner withdrew 4000 from the business for personal use.
20. Tax Paid 5000.
21. Brought Xerox ink refill for 17000
22. Brought seven bundles of Xerox papers for 2000
23. Water Bill 1000
24. Took loan 20000
25. Insurance for the store 7000.
Revenue and business model
The shop’s business and revenue model mainly focuses on making partnerships and also
appealing to different customer segments who are able to give them money. They have various
revenue streams like product sales, personalization of services as well as bulk orders from
different clients. This model also plays an important role in making great customer relationships
with their customers so as to make long-lasting customers who are able to buy different
stationery products from them and are also able to bring in a constant source of revenue for them.
They tend to rely on their unique product range as well as quality and reliability of their products
to bring in more revenues for them.
Overall, the business and revenue model of this company is great and unique in nature which is
different from those of other firms.